Measuring Performance in Advertising Effectiveness

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The 'Measuring Performance in Advertising Effectiveness' session by Jorge Ruiz at Neo@Ogilvy which took place at Performance Marketing Insights NYC on March 13, 2013.

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  • Great approach because most clients like to see a relative lift vs. a control on your first campaignCookie-panels are also great because they have a wider behavior footprint
  • Goal: measure the attributable survival rate of a lab ratYou don’t know when a rat may be affected by a specific illness , but when they do you want to compare the cancerous factors that influenced the group that survived vs. did notGoal: measure the attributable conversion rate of a consumerYou don’t know when a consumer may convert, but when they do you want to compare the media placements that influenced the group that converted vs. did not
  • Measuring Performance in Advertising Effectiveness

    1. 1. Neo@Ogilvy MeasuringPerformance in Advertising Effectiveness Jorge Ruiz
    2. 2. Good Attribution helps fuel Performance• Clients need assurances that our advertising performance is attributable…• …yet “attribution” means many things to different people Digital Cross-Channel Attribution Attribution• For how many days can I take credit for view- • Which channels within my campaign drive based conversions? the best Brand Awareness / Intent lifts?• Should I keep investing in placements that • What is my optimal channel mix through to don’t drive a lot of immediate conversions? sales? 2
    3. 3. How we drive Performance through AttributionClient needs will drive where and how you start. Here is our approach: Ad-Exposure Cross-Media Research Dynamic Mix Modeling Cross- Channel Display Display Brand & Advanced Attribution (Algorithmic) View-through Test Behavior Lifts Digital Implement at Launch… …Roadmap when scale and budget affords 3
    4. 4. Let’s start with Digital Attribution 4
    5. 5. You have to start by asking: “Whither the click?” • Ample evidence that the View-Thru effect is incrementalIndustry POV Neo@Ogilvy Display View-thru Norms"The comScore norms data provide compelling empirical Category Pct Lift Optimal Windowsupport for the belief that there is a quantifiable view-thru Credit Cards +12% First 12 hoursimpact of online ad exposures on brand value and sales. Forthe studies in which both retailers online and offline sales Consumer Electronics +11% Same Daywere analyzed, for periods ranging from two weeks to three Insurance – Personal +54% 1 daymonths after the initial exposure to an online display ad, theincremental online sales lift was 27 percent and offline sales Travel +42% 3 dayslift was 17 percent. “ * Trading – Options +35% 7 days Trading – Stock +28% 10 days Insurance - Auto +74% 15 days* http://www.comscore.com/Press_Events/Press_Releases/2008/11/Value_of_Online_Advertising 5
    6. 6. Where possible, implement behavioral lift tests• You can do this with any Ad-Server Audience segmentation or through a cookie-panel research partner 6
    7. 7. To do Digital Attribution right you have to use a model with a ‘hold-out’ group • This is why an ‘Algorithmic’ approach should be a standard Attribution for Medical Researchers Attribution for Marketing ResearchersMeasure the attributable survival rate of a lab mice Measure the attributable conversion rate of aexposed to multiple protein sequences consumer exposed to multiple media placements Cookie ID: 1234 Session ID: 5678 vs. mice that did not survive with same treatment vs. non-converters with same media placements Converters Incremental probability of true conversion ‘weight’ Non-Converters 7
    8. 8. Good attribution models fuel Performance • Here is how we found ‘growth’ placements, minimized low-performers First, help me attribute Digital placements… …then help me predict Search opportunity Banner Attribution by Ad ID 60 Old Rank: placements by # ‘Last-Touch’ conversions 50 Abandoners# Conversions Attributed 40 Conversions Travel Endemic 30 Model Attribution LT Attribution 20 10 New Rank: placements by # ‘Attributable’ conversions 0 Campaign Placements(by LT Attribution) # of Conversions) Ad ID Rank (Ranked by Each dot in this chart is a Placement from Model 1 30.0% 20.0% 10.0% 8 0.0%
    9. 9. Going Beyond Digital into Cross-Channel 9
    10. 10. A few Cross-Channel Effectiveness Methods Cross-Media Ad Effectiveness Studies Econometric Mix Models• Typical output of cross-media work is to show what • Mix Models are more useful for the broader, long- combination of media exposure can yield the term measurement of how spend over time biggest brand & Sales lifts influences activity• An advantage is that it can go live with a new • An advantage is that it can account for external campaign and scale up /down over time business factors and allow for solid financial simulations 10
    11. 11. For measuring brand campaigns, cross-media can leverage latest research innovations • For example, when running campaigns with Brand Awareness/Intent goals, cross- media results can tell you the right channel mix, but not always its total impact to salesKnown Impact Modeled Impact Total Impact (Campaign Incremental) Awareness Favor. P.I. 1 Channel 2 Channel Combo 3 Channel Combo 11
    12. 12. Paid/Owned/Earned? Latest Mix models can take into account the indirect effect• Old Models: linear solution New Models: Account for indirect consumer behavior New market mix models can better account …and help break down the optimal for all the non-linear interactions… effective contribution to a business goal ‘love’ Paid Media * Beyond Fans and Tweets: Measuring the Impact of Social Media, The Stern Center for Measurable Marketing, NYU, Oct 2011 12
    13. 13. 2 other things to consider to drive Performance 13
    14. 14. Personalization via Social CRM• We’re already seeing success with this kind of tactic• But a simple CRM upload is not enough – Creative – Context – Call-to-Action / Offer http://techcrunch.com/2012/10/11/facebook-custom-audience-ads/ 14
    15. 15. Personalization via Revenue Management• The best personalization is often the one under the hood and is purely focused on revenue management http://aws.amazon.com/solutions/case-studies/ticketmaster/ 15
    16. 16. In summary…1. Define what is attribution to you2. Plan to socialize your projects as a ‘framework’ to solve one step at a time3. Know your audience and the breadth/depth (macro/micro) of the analysis needed4. To measure offline and online together as ‘cross-channel’ toward predicting key business goals, two research methods continue to be the most utilized: Mix models or Cross-Media Surveys5. When thinking of personalization beyond site engagement, SocialCRM or Revenue Management solutions are two areas with big opportunity 16
    17. 17. Neo@OgilvyThank You.To learn more, contact me:Jorge.Ruiz@ogilvy.com@jorgeruiztweets

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